Qatar’s budget for this fiscal is expected to record a surplus of around QR16.5bn (2.3% of GDP), even assuming higher than budgeted expenditure, according to regional banking group Emirates NBD.
This, the bank said, is because of its “more optimistic” oil price forecast of $68/barrel for 2022.
According to Emirates NBD, Qatar’s revenues are expected to reach to QR196bn, a 22.4% rise compared to last year’s budget estimates. The budget for 2022 has assumed oil prices to $55 per barrel.
Expenditures are estimated to reach QR204.3bn, 4.9% higher than 2021. QR17.8bn have been allocated to the education sector, or 8.7% of total expenditures, and QR20bn have been allocated to the health sector, representing 9.8% of total expenditures.
The estimated budget deficit for the 2022 fiscal year is QR8.3bn. The Ministry of Finance noted the deficit will be addressed through current monetary balances and the issuance of local and foreign debt instruments if needed.
Qatar's economy grew 2.6% year-on-year (y-o-y) in the third quarter (Q3) of 2021, driven mainly by the non-hydrocarbon sector according to official estimates.
Accommodation and food service activities saw the biggest annual jump, growing 29.8% y-o-y, reflecting the continued recovery of a sector hit badly by coronavirus-related restrictions in 2020.
Transportation and storage activities registered an equally strong, 29.7% y-o-y growth, while manufacturing grew 6.1% y-o-y.
Building and construction GDP grew 5.2% quarter-on-quarter (q-o-q) and 4.8% y-o-y in Q3 as the country ramped up preparations for hosting the FIFA World Cup (in late 2022).
Hydrocarbons GDP decreased -0.7% y-o-y in Q3, while non-hydrocarbon sectors grew 4.7% y-o-y in Q3, 2021.
"We expect growth to accelerate in Q4 and estimate full year GDP growth at 2.5% in 2021. PMI data supports this view with the headline PMI reaching record highs in the final quarter of last year on surging new work and business activity. Employment in the private sector also increased but at a relatively modest pace. Companies surveyed remained largely positive about World Cup-related business opportunities in 2022.
“In 2022 we expect the non-hydrocarbon sectors to see faster growth of 6%, boosted by hosting the FIFA World Cup in Q2 2022, with the oil and gas sector also expected to expand for the first time in almost a decade. We forecast headline GDP growth of 4.5% in 2022,” noted Khatija Haque, head (Research) and chief economist and Shady Elborno, head (Macro Strategy) at Emirates NBD.
In response to the spike in Covid cases last month, Qatar re-imposed some restrictions on commercial activities, which Emirates NBD expects to weigh on Q1, GDP only, at this stage.
This, the bank said, is because of its “more optimistic” oil price forecast of $68/barrel for 2022.
According to Emirates NBD, Qatar’s revenues are expected to reach to QR196bn, a 22.4% rise compared to last year’s budget estimates. The budget for 2022 has assumed oil prices to $55 per barrel.
Expenditures are estimated to reach QR204.3bn, 4.9% higher than 2021. QR17.8bn have been allocated to the education sector, or 8.7% of total expenditures, and QR20bn have been allocated to the health sector, representing 9.8% of total expenditures.
The estimated budget deficit for the 2022 fiscal year is QR8.3bn. The Ministry of Finance noted the deficit will be addressed through current monetary balances and the issuance of local and foreign debt instruments if needed.
Qatar's economy grew 2.6% year-on-year (y-o-y) in the third quarter (Q3) of 2021, driven mainly by the non-hydrocarbon sector according to official estimates.
Accommodation and food service activities saw the biggest annual jump, growing 29.8% y-o-y, reflecting the continued recovery of a sector hit badly by coronavirus-related restrictions in 2020.
Transportation and storage activities registered an equally strong, 29.7% y-o-y growth, while manufacturing grew 6.1% y-o-y.
Building and construction GDP grew 5.2% quarter-on-quarter (q-o-q) and 4.8% y-o-y in Q3 as the country ramped up preparations for hosting the FIFA World Cup (in late 2022).
Hydrocarbons GDP decreased -0.7% y-o-y in Q3, while non-hydrocarbon sectors grew 4.7% y-o-y in Q3, 2021.
"We expect growth to accelerate in Q4 and estimate full year GDP growth at 2.5% in 2021. PMI data supports this view with the headline PMI reaching record highs in the final quarter of last year on surging new work and business activity. Employment in the private sector also increased but at a relatively modest pace. Companies surveyed remained largely positive about World Cup-related business opportunities in 2022.
“In 2022 we expect the non-hydrocarbon sectors to see faster growth of 6%, boosted by hosting the FIFA World Cup in Q2 2022, with the oil and gas sector also expected to expand for the first time in almost a decade. We forecast headline GDP growth of 4.5% in 2022,” noted Khatija Haque, head (Research) and chief economist and Shady Elborno, head (Macro Strategy) at Emirates NBD.
In response to the spike in Covid cases last month, Qatar re-imposed some restrictions on commercial activities, which Emirates NBD expects to weigh on Q1, GDP only, at this stage.